Loan Types

For many, homeownership means investing in the future. The equity you build is yours to keep and while it may be more challenging to buy a home early in life, owning a home offers the potential to help build a healthy financial future and peace of mind.

The first stage in applying for a mortgage is typically prequalifying for one. Your credit score determines your interest rate, loan choices and your minimum down payment. Ultimately, the maximum size of your loan amount will be determined by your debt-to-income ratio (DTI), which is the percentage of monthly gross income that goes towards paying debts. In general terms, the lower your DTI, the more you may be eligible to borrow and the more financing options may be available to you.

It's best to have the required information and paperwork ready throughout the prequalification and loan application process.

You will typically need:

  • One or two W-2 forms
  • Payment stubs and tax returns
  • Records of your savings and investments
  • Minimum two-year job history, which may include some college or university work in a related subject area
  • Minimum two-year history of good credit
  • Three or four trade lines on your credit report
  • Demonstrated ability of paying bills on time

If you are self-employed, optimizing your savings, credit score, down payment; minimizing your debts; and maintaining an up-to-date profit-and-loss statement is a good strategy. Your income will generally be computed using your past two tax returns.

With over 100 branches in 21 states over 1000 employees and a 29 year history of integrity, personalized service and on-time closings, Cornerstone is proud to be recognized as a top lender in the United States.